A 5.52 percent stake in the domestic conglomerate, Transcorp Corporation Plc, has been acquired by Femi Otedola, a millionaire businessman, according to the company’s disclosure.
This information came in the wake of rumors that Otedola had purchased a sizeable position in the conglomerate, whose shares have seen intense trading on the Nigerian Exchange Limited since last week, dominating both volume and value charts.
Transcorp expressed its appreciation for the investment in a notice submitted to the NGX on Thursday by the company secretary, Funmi Olofintuyi.
“As stated in our prior message, the Company appreciates this vote of confidence in its management and leadership as we continue our steadfast dedication to better shareholder returns, which is rooted in our ideology of Africapitalism.
“Rest assured of our commitment to remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda, and our ability to positively contribute towards building prosperity for all.”
According to Transcorp’s 2022 financial report, as of December 31, 2022, only UBA Nominees Limited-Trading had 5% or more of the company’s issued and fully paid shares of 50 Kobo.
Additionally, the group’s chairman, Tony Elumelu, directly owns 273,104,04 shares, while indirectly holding 293,983,193 shares through HH Capital Limited and 273,545,722 shares through Heirs Holdings Limited.
UBA Trustees Limited, Mr. Emmanuel Nnorom, and three other individuals serve as directors for UBA Nominees Limited, which is owned by UBA Group, whose chairman is Elumelu.
Otedola is the largest shareholder in the Geregu Power generation company, while the Transcorp corporation has investments in the oil and gas, hospitality, and power generation sectors of the economy.
Transcorp shares increased in value from Wednesday’s closing price of N2.23 to Thursday’s closing price of N2.45, or 9.87%.
